The Real Deal - New York Real Estate News

As forbearance wave hits, real estate industry begs Fed to take action

Posted: 06 Apr 2020 03:45 PM PDT

The commercial real estate industry is asking the federal government to buy bonds, assets, or lend money to mortgage banks as forbearance requests pile up. Some of the industry’s biggest trade groups signed a letter asking the Federal Reserve to create what’s called a liquidity facility to support lenders and free up cash flow, according to Inman. In this case, it could mean the government buys a lender’s bonds or loans money directly to the

“Tactically, I’ve made regrets. Strategically, I am unchanged:” The Masa Son interview

Posted: 06 Apr 2020 03:30 PM PDT

Following the billions it has plowed into now-beleaguered WeWork, compounded by the coronavirus crisis, SoftBank’s stock is trading well below the value of its assets. Put another way, public-market investors seem to think Softbank’s $100 billion Vision Fund is actually worth less than zero. But CEO Masayoshi Son is undeterred. In an interview with Forbes, the Japanese billionaire insisted that his long-term vision remained the same despite some short-term mistakes. “Tactically, I’ve made regrets,” Son

Sunnyside Yard project by the numbers

Posted: 06 Apr 2020 03:22 PM PDT

Real estate insiders like to cite the well-known axiom about the value of land: “They’re not making any more of it.” But that’s essentially what the de Blasio administration and Amtrak aim to do in western Queens by building on top of an active rail yard to create a 115-acre affordable housing development the likes of which the city hasn’t seen in nearly 50 years. In early March, the city unveiled a master plan to

Proptech and the pandemic: Will coronavirus change how real estate works?

Posted: 06 Apr 2020 02:00 PM PDT

Proptech pioneers have long sought to disrupt the real estate industry with new ways of doing business. Will the coronavirus pandemic speed up that evolution, or be just a blip on the radar? As real estate pros nationwide have had to adopt new technologies to go about their day-to-day business in the age of social distancing, The Real Deal‘s E.B. Solomont sat down with three proptech leaders Friday, via Zoom, to discuss the short- and

Catch Hospitality Group laid off nearly 770 last month

Posted: 06 Apr 2020 01:30 PM PDT

Catch Hospitality Group has laid off 767 people from its stable of New York City restaurants. Over 356 workers at Catch NYC lost their jobs, while 330 additional employees were laid off at Catch Steak. The restaurant group also eliminated 81 jobs from Lexington Brass, located in the Hotel 48 Lex. The layoffs took place on March 16 and were attributed to the Covid-19 pandemic, according to notices filed in New York. The notices characterized

City clears another 300 construction sites for “emergency” work

Posted: 06 Apr 2020 01:10 PM PDT

The number of emergency construction sites exempt from the state’s shutdown of non-essential work has jumped by more than 300 since last week. According to a real-time map created by the Department of Buildings, “emergency work” is ongoing at 781 sites throughout the city, up from 402 shown on Friday. Emergency work on the map includes construction that would pose a public danger if left incomplete, as well as work by a lone person (which

Related’s Blau on tenants with cash: “It’s their obligation to pay”

Posted: 06 Apr 2020 12:45 PM PDT

With a $97 billion real estate portfolio, Related Companies faced a reckoning this month. But after bracing for a major loss of rental income, Related CEO Jeff Blau said “the results have been pretty good so far.” In an interview with Andrew Ross Sorkin on CNBC’s “Squawk Box,” Blau said commercial and residential tenants are by and large paying rent this month. Retailers, however, are another story. Just a few days into April, 88 percent

Rental insurance startup Jetty lays off 40% of staff

Posted: 06 Apr 2020 12:00 PM PDT

Jetty, a Silicon Valley-backed rental-insurance startup, has laid off 40 percent of its workforce, The Real Deal has learned. The New York-based company cut more than 30 jobs as it looks to shore up its balance sheet to weather the coronavirus crisis, a spokesman confirmed. Launched in 2017, Jetty sells rental insurance to tenants and acts as a guarantor on leases in exchange for 5 percent to 10 percent of the annual rent. Founded by

Brokers must wait to tap SBA forgivable loan lifeline

Posted: 06 Apr 2020 12:00 PM PDT

The majority of real estate brokers seeking help from the federal government’s paycheck lifeline program will have to wait until Friday to do so. The Small Business Administration’s $350 billion Paycheck Protection Program, which offers forgivable loans that can be used to cover expenses like employee salaries and rent amid the coronavirus crisis, launched on Friday. But real estate brokers and others who work as independent contractors or are self-employed will have to wait until

SoFla prepares for flood of foreclosures and evictions after governor’s freeze

Posted: 06 Apr 2020 11:30 AM PDT

With hundreds of Floridians losing their jobs on a daily basis and the economy on crutches, Florida Gov. Ron DeSantis suspended evictions and foreclosures for a period of 45 days. But experts say it is far from enough. The move, announced on Thursday, allows homeowners and renters to stay in their homes if they can’t pay their mortgages or rent due to Covid-19. It follows similar emergency orders issued in New York and in California

Cuomo extends ban on non-essential work to April 29

Posted: 06 Apr 2020 10:50 AM PDT

Gov. Andrew Cuomo on Monday extended his statewide ban on going to non-essential workplaces through April 29. During a press conference in Albany, the governor said his March 22 order, which forced non-essential businesses to halt in-office operations, will remain necessary for at least two additional weeks to control the spread of the coronavirus. Since the ban took effect, the definition of what is considered essential has changed dramatically. Construction was initially exempt from the

Manhattan office developer launches $200M fund

Posted: 06 Apr 2020 10:30 AM PDT

Manhattan office developer KPG Funds is trying to put its money where its mouth is. The owner and operator, formerly known as K Property Group, is raising a $200 million fund, according to paperwork filed March 31 with the Securities and Exchange Commission. The minimum investment for outside investors is $5 million. KPG CEO Greg Kraut said the fund had been in the works before the pandemic but the firm decided to press on. “We’re

Tonight on TRD Talks: Big brokers on the new rules in residential real estate

Posted: 06 Apr 2020 10:12 AM PDT

In our first TRD Talks Live episode, brokerage chiefs came together to discuss running their businesses during unprecedented circumstances. Tonight, we’ll hear from the folks who make the deals happen: the agents. At 5 p.m., TRD Talks Live will feature three top agents explaining how they and their teams are adjusting to the new rules of residential real estate. TRD reporter Erin Hudson will be joined by Lisa K. Lippman, the top producing broker at

Kushner Cos. pushes ahead with eviction lawsuits: report

Posted: 06 Apr 2020 08:15 AM PDT

Kushner Companies is continuing to file eviction and debt collection lawsuits during the coronavirus crisis. At least 15 New Jersey and Maryland tenants have received lawsuits from properties owned by Kushner Cos. since both states declared states of emergency, according to The Intercept. Courts have closed in both states, and both governors have called for a moratorium on evictions. However, these moratoriums do not prevent debt collectors from filing new lawsuits. Kushner Cos.’ Westminster Management

Brooklyn’s luxury resi market only saw 2 deals signed last week

Posted: 06 Apr 2020 07:30 AM PDT

Activity was moribund once again in Brooklyn’s luxury residential market, as real estate continues to grapple with the unprecedented fallout of the coronavirus pandemic. The borough saw just two luxury contracts signed last week, both for townhouses, according to the latest report from Compass. The report looks at homes in the borough asking $2 million or more based on the last publicly available asking prices. The priciest deal was for a townhouse at 48 Sidney

Vornado inks another $52M closing at 220 Central Park South

Posted: 06 Apr 2020 07:00 AM PDT

The global pandemic that continues to slam markets hasn’t stopped closings at Vornado Realty Trust’s ultra-luxury 220 Central Park South. Another eye-popping sale has been completed at the Billionaire’s Row tower, this time for almost $52.3 million, a property record filed last week shows. The offering price on the full-floor unit was $57 million, per a 2019 amended condominium offering plan. The buyers of the unit are two trusts, whose trustees are David J. Stoll

Silverstein’s Marty Burger recovers from coronavirus

Posted: 06 Apr 2020 06:25 AM PDT

Silverstein Properties CEO Marty Burger tested positive for coronavirus last month. Burger said his symptoms showed up soon after his annual ski trip to Park City, Utah in early March, which some of the biggest names in real estate attend, according to Commercial Observer. But the majority of people who went on the trip did not get sick, he said. Burger described having fairly mild symptoms of the virus, including having a fever and aches

Real estate and retail shutdowns driving Tri-State slump

Posted: 06 Apr 2020 05:55 AM PDT

The economic slowdown that is throttling the U.S. has seen economic output drop by three-quarters in some industries, including food services and arts and entertainment. In the tri-state area of New York, New Jersey and Connecticut, the coronavirus-caused slowdown is most acute in the real estate and retail sectors, according to the Wall Street Journal, citing a report from the Economic Innovation Group. A separate analysis from Moody’s found that at least a quarter of

Pair of Bronx multifamily buildings leads New York’s mid-market investment deals

Posted: 06 Apr 2020 05:00 AM PDT

There were three deals in New York’s mid-level investment sales market this week, including a pair of rent-stabilized buildings in the Bronx and a pair of mixed-use buildings in Manhattan. Here are the details: 1. Prana Investments is buying two buildings at 1226 and 1240 Sherman Avenue in the Bronx for $17 million from the Morgan Group. The adjacent properties are both rent-stabilized multifamily buildings. The buildings both stand six stories tall and have 123

Why real estate is still tangled up with the mob

Posted: 06 Apr 2020 04:30 AM PDT

During a court hearing this winter, alleged loan shark Mark “Chippy” Kocaj urged a federal judge to allow him to work for a Bronx-based construction company. Kocaj was out on bail, awaiting trial for his alleged role in a mafia-connected construction bribery scheme. In the meantime, he wanted to return to the industry where he’d spent most of his career — but prosecutors weren’t keen on the idea. “We do have concerns about that company

That empty feeling: Pandemic crushing New York event venues

Posted: 06 Apr 2020 04:00 AM PDT

The coronavirus pandemic has canceled events ranging from weddings to Wimbledon, putting a huge financial strain on businesses that rely on such gatherings. Among New York event venues, the revenue losses are greatest at its two major arenas, Madison Square Garden and Barclays Center. But the statewide ban on congregating means spaces of any size are shuttered, save for Javits Convention Center and a few others being converted into temporary medical facilities. For proprietors with